Porsche stock slid more than seven percent on Monday after the carmaker confirmed delays to its electric rollout. The company had already warned that falling demand would drag down its 2025 earnings.
Volkswagen takes a hit
Parent company Volkswagen also lost more than seven percent on the same day. It pledged billions to update Porsche’s line-up, which spooked investors further. The fall underlines how European automakers face Chinese competition and a weakening economy.
Profit target slashed
Porsche cut its profit margin forecast from up to seven percent to two percent or less. The firm cited US tariffs, weaker Chinese luxury demand and sluggish EV adoption. Managers confirmed that new electric launches will be pushed back. Petrol production will continue longer, despite Europe’s 2035 deadline for combustion bans.
Carmakers challenge rules
Manufacturers across Europe want regulators to ease climate goals they call unrealistic. Porsche now plans to release its next SUV range only with petrol and hybrid engines. The Panamera and Cayenne will also keep combustion options well into the 2030s.
Rivals under strain
BMW and Mercedes-Benz are also slashing costs to face rising competition. Chinese brands such as BYD and XPeng are fighting a fierce price war. Car prices in China have fallen 19 percent in two years to about 165,000 yuan, or £17,150.
Slowing the electric push
Porsche’s latest move shows retreat from its earlier bold vision. Ten years ago, it unveiled the Mission E as a symbol of its future. Today, the company concedes the transition will take far longer than once promised.
